New Delhi, June 23 -- The FMCG sector posted a muted performance in the fourth quarter of FY25, largely due to persistent weakness in urban demand. Urban markets, which contribute over half of total FMCG sales, struggled with subdued discretionary spending, stagnant wage growth, high EMIs, and rising living costs. Additionally, intensifying competition from direct-to-consumer (D2C) brands and quick-commerce platforms further eroded traditional retail demand.

Despite these challenges, rural markets showed signs of steady recovery, buoyed by easing inflation, increased government spending, and higher minimum support prices (MSPs) for key crops. This rural resilience helped cushion the overall topline, though most companies reported only lo...